FVC

2003 2004 2005 2006

Sales $36,312 $34,984 $35,252 $45,116
Cost of goods sold 25,924 24,200 24,300 31,580
Selling, general, and administrative 2,020 2,100 2,252 2,628
Other income—net 92 572 108 72
EBIT $8,460 $9,256 $8,808 $10,980
Tax(40%) $3,384 $3,702 $3,523 $4,392
NOPAT $5,076 $5,554 $5,285 $6,588
Depreciation $784 $924 $1,088 $1,280
Net Operation CF $5,860 $6,478 $6,373 $7,868
Change in NWC
Change in Net Capital Expenditure
FCF
Discount Cash Flow
Horizon Value
PV( Horizon Value)

VALUATION
PV(FCF(2011-2020)) 110,841
Value of firm 110841.14
Shares Outstanding 2,440
Fair value per share 45.43
Income before tax
Rate
Total debt
EBIT
Tax(40%)
NOPAT
Depreciation
Net Operation CF
Change in NWC

Change in Net Capital Expenditure

FCF
Discount Cash Flow
Horizon Value
PV( Horizon Value)

VALUATION
PV(FCF(2011-2020)) 1043173.52
Minus value of current debt 155.80
Value Company 1043017.72
Shares Outstanding 64,417
Fair value per share 16.19
FVC
2007 2008 2009 2010 2011 2012
$49,364 $59,600 $66,000 $73,200 $81,200 $90,000
37,044 43,816 48,750 54,104 59,958 66,200
2,936 3,612 4,124 4,564 5,052 5,692
228 240 264 288 320 352
$9,612 $12,412 $13,390 $14,820 $16,510 $18,460
$3,845 $4,965 $5,356 $5,928 $6,604 $7,384
$5,767 $7,447 $8,034 $8,892 $9,906 $11,076
$1,508 $1,660 $1,828 $2,012 $2,212 $2,432
$7,275 $9,107 $9,862 $10,904 $12,118 $13,508
5,448 4,196 4,676 5,173 5,689
3,491 2,184 2456 2729 3002
$168 $3,482 $3,772 $4,216 $4,817
$153 $2,877 $2,832 $2,877 $2,988
159768.4
99113.5
 2007 2008 2009 2010 2011 2012
273402 279502 277061 274540 285164 289573
6.48% 6.98% 6.98% 6.98% 6.98% 6.98%
155795 155795 155795 155795 155795 155795
283497.52 290376 287935.491 285414.491 296038.491 300447
113399 116151 115174.196 114165.796 118415.3964 120179
170098.51 174226 172761.295 171248.695 177623.0946 180268
26,800 27,950 29,770 31,700 33,170 35,960
196,899 202,176 202,531 202,949 210,793 216,228
25359 38472 41979 45831 50065

65151 62652 70793 75782 82431

111,666 101,407 90,177 89,180 83,732
100873 82751.1342 66473.9444 59385.1 50368.14
1135962
683322.669
 FVC
Beta of security 1 ¬
Risk-free rate 4.52% (Ex 9)
Market risk premium 5.50% (Ex 9)
Cost of equity 10.02%
Cost of debt 6.32%
Tax rate 40%
D/V 0 ¬
E/V 100%
WACC=Kd(1-T)*D/(D+E)+Ke*E/(D+E)
® WACC 10.02%

RSE
Beta of security 1.25
Risk-free rate 0.0452
Market risk premium 5.50%
Cost of equity 11.40%
Cost of debt 7.0%
Tax rate 40%
D/V 0.101573
E/V 0.898427
WACC=Kd(1-T)*D/(D+E)+Ke*E/(D+E)
® WACC 10.7%